us patent application
TRANSCRIPT
1
Attorney Docket No. 30231.01 PATENT
UNITED STATES PATENT APPLICATION
of
Brian McLaren Foote, Adam Wolfe and Jeff Hinshaw
for
COMPREHENSIVE BUYING, SELLING, TRADING, TRACKING, VERIFICATION,
VALIDATION, TOKENIZATION AND FINANCIAL SERVICES USING BLOCKCHAIN
RELATED APPLICATIONS
This application claims priority on U.S. Provisional Application Serial No.
62/927,938, filed on October 30, 2019, and entitled “COMPREHENSIVE BUYING,
SELLING, TRADING, TRACKING, VERIFICATION, VALIDATION, TOKENIZATION AND
FINANCIAL SERVICES USING BLOCKCHAIN” and U.S. Provisional Application Serial
No. 63/014,544, filed on April 23, 2020, and entitled “COMPREHENSIVE BUYING,
SELLING, TRADING, TRACKING, VERIFICATION, VALIDATION, TOKENIZATION AND
FINANCIAL SERVICES USING BLOCKCHAIN”. As far as permitted, the contents of U.S.
Provisional Application Serial No. 62/927,938 and U.S. Provisional Application Serial No.
63/014,544, are incorporated in their entirety herein by reference.
BACKGROUND
Systems utilizing cryptography have advantages over other verification, tracking
and financial services systems. For example, tokenized asset transfers can also be faster
than conventional asset transfers. Because tokenized assets use blockchains, these
assets are often trusted since blockchains are immutable records of transactions.
The process of verifying ownership of assets is widely varied and complicated by
globally diverse methods of data collection. The immutability of blockchain data provides
a reliable store of information. Other systems have attempted to tackle disparate
2
blockchain use cases as one-off solutions. However, none has been successful using a
comprehensive solution for all of these processes. Therefore, there is a need to leverage
blockchain immutability to prove asset ownership and the provenance of goods globally
in a user-friendly application-based ecosystem.
SUMMARY
The present invention is directed toward a method for generating specialized
tokens for a bundled asset that can include a plurality of assets. In various embodiments,
the method can include the step of a user inputting data defining a bundled portfolio
including one or more of a trading symbol, a token name and an initial supply into a host
database of a host system to establish a smart contract token. The plurality of assets
within the bundled asset can each be tokenized and verified utilizing a blockchain.
In one embodiment, the method can include the step of tracking the bundled
portfolio with a smart contract.
In some embodiments, the bundled portfolio can include a plurality of different
types of assets.
In various embodiments, the method can include the step of a user determining a
price for the bundled portfolio into the host system.
In certain embodiments, the method can include the step of the user determining
a weighting of the bundled portfolio into the host system.
In some embodiments, the method can include the step of the user inputting one
or more smart contract addresses for any digital assets included in the bundled portfolio
into the host system.
In various embodiments, the method can include the step of the user inputting one
or more API web addresses for real-time pricing of each of the plurality of assets into the
host system.
In certain embodiments, the method can include the step of deploying the smart
contract token to the blockchain.
In some embodiments, the method can include the step of transferring the smart
contract token to a third-party financial exchange.
3
The present invention is also directed toward a host system for generating
specialized tokens for a bundled asset that can include a plurality of assets. The host
system can include one or more of a host processor, a host database, and a non-
transitory computer-readable medium comprising code, executable by the host
processor.
In some embodiments, the host system can be configured to allow a user to input
data defining a bundled portfolio including one or more of a trading symbol, a token name
and an initial supply into the host database of the host system to establish a smart contract
token. The plurality of assets within the bundled asset can each be tokenized and verified
by utilizing a blockchain.
In some embodiments, the host system can be configured to track the bundled
portfolio with a smart contract.
In certain embodiments, the bundled portfolio can include one or more non-
currency assets.
In various embodiments, the host system can be configured to allow the user to
determine a price for the bundled portfolio and set the price for the bundled portfolio into
the host system.
In some embodiments, the host system can be configured to allow the user to
determine a weighting of the bundled portfolio into the host system.
In certain embodiments, the host system can be configured to allow the user to
input one or more smart contract addresses for any digital assets included in the bundled
portfolio into the host system.
In various embodiments, the host system can be configured to allow the user to
input one or more API web addresses for real-time pricing of each of the plurality of assets
into the host system.
In some embodiments, the host system can be configured to deploy the smart
contract token to the blockchain.
In certain embodiments, the host system can be configured to transfer the smart
contract token to a third-party financial exchange.
In various embodiments, the plurality of assets can include at least one digital
asset.
4
The present invention is also directed toward a host system for generating
specialized tokens for a bundled asset that includes a plurality of assets. In certain
embodiments, the host system can include a host processor, a host database, and a non-
transitory computer-readable medium comprising code, executable by the host
processor, for implementing a method.
In various embodiments, the method can include a user inputting data into the host
database of the host system regarding the bundled asset including information regarding
one or more of: the specific assets included in the bundled asset, a trading symbol for the
bundled asset, a token name for the bundled asset, and a quantity of an initial supply of
tokens, the data establishing a smart contract token, tracking the bundled asset with a
smart contract, the user identifying the trading symbol for the bundled portfolio into the
host system, the user determining a price for the bundled portfolio into the host system,
the user determining a weighting of the bundled portfolio into the host system, the user
inputting one or more smart contract addresses for any digital assets included in the
bundled portfolio into the host system, the user inputting one or more API web addresses
for real-time pricing of each of the plurality of assets into the host system, deploying the
smart contract token to the blockchain, and/or transferring the smart contract token to a
third-party financial exchange.
BRIEF DESCRIPTION OF THE DRAWINGS
The novel features of this invention, as well as the invention itself, both as to its
structure and its operation, will be best understood from the accompanying drawings,
taken in conjunction with the accompanying description, in which similar reference
characters refer to similar parts, and in which:
Figure 1 is block diagram of one embodiment of an integrated ecosystem of
financial services utilizing blockchain technology;
Figure 2 is a flow chart depicting one embodiment of a method for authenticating
the origin of property of a seller;
Figure 3 is a flow chart depicting one embodiment of a method for verifying the title
of property of a seller; and
5
Figure 4 is a flow chart depicting one embodiment of a method for generating
specialized tokens for a bundled asset including one or more asset types.
While embodiments of the present invention are susceptible to various
modifications and alternative forms, specifics thereof have been shown by way of
example and drawings, and are described in detail herein. It is understood, however, that
the scope herein is not limited to the particular embodiments described. On the contrary,
the intention is to cover modifications, equivalents, and alternatives falling within the spirit
and scope herein.
DESCRIPTION
Embodiments of the present invention are described herein in the context of a
comprehensive buying, selling, trading, tracking, verification, validation, tokenization and
financial services using blockchain technology. More specifically, the immutability of
blockchain technology is utilize to improve particular financial service systems and
methods including authenticating the origin of property of a seller, verifying the title of
property of a seller, and generating specialized tokens for bundled assets including one
or more asset types.
Those of ordinary skill in the art will realize that the following detailed description
of the present invention is illustrative only and is not intended to be in any way limiting.
Other embodiments of the present invention will readily suggest themselves to such
skilled persons having the benefit of this disclosure. Reference will now be made in detail
to implementations of the present invention as illustrated in the accompanying drawings.
The same or similar reference indicators will be used throughout the drawings and the
following detailed description to refer to the same or like parts.
In the interest of clarity, not all of the routine features of the implementations
described herein are shown and described. It will, of course, be appreciated that in the
development of any such actual implementations, numerous implementation-specific
decisions must be made in order to achieve the developer's specific goals, such as
compliance with application-related and business-related constraints, and that these
specific goals will vary from one implementation to another and from one developer to
6
another. Moreover, it will be appreciated that such a development effort might be complex
and time-consuming, but would nevertheless be a routine undertaking of engineering for
those of ordinary skill in the art having the benefit of this disclosure.
Figure 1 is block diagram of one embodiment of an integrated ecosystem 100 of
financial services utilizing blockchain technology. The integrated ecosystem 100 may be
implemented on a host system and a network of devices. The host system can include a
host processor, a host database, and a non-transitory computer-readable medium
comprising code, executable by the host processor. It is understood that the integrated
ecosystem and host system can include additional systems, subsystems and elements
than those specifically shown and/or described herein. Additionally, or alternatively, the
ecosystem and host system can omit one or more of the systems, subsystems and
elements that are specifically shown and/or described herein.
As illustrated in Figure 1, the integrated ecosystem 100 may include a marketplace
client 102, an electronic exchange client 104, and an agent portal 106. The ecosystem
may further include an authentication element 108 that can be commonly shared between
each subsystem of the integrated ecosystem 100.
In one embodiment, the authentication element 108 may include encryption,
firewalls, user passwords, and two-factor authentication such as Google Authenticator™.
If the user successfully meets the requirements of the authentication element 108, the
user will have access to the remainder of the elements of the system or subsystem to
which the authentication element 108 is connected. The authentication element 108 can
also integrate Firebase™ Authentication which uses an internally modified version of
script to hash account passwords. The authentication element 108 can be multiple
elements as shown in Figure 1 as three elements, 108A, 108B, 108C. Alternatively the
authentication element 108 can be one singular element connected to all of the other
elements in the integrated ecosystem 100. Still alternatively, the authentication element
108 can be connected to less than all of the other elements in integrated ecosystem 100
and authentication element 108 may only be connected to one other element. The
authentication element 108 can include other elements, systems, subsystems,
functionalities and modalities not specifically shown and/or described herein.
In another embodiment, the marketplace client 102 can be a user interface on an
7
electronic device. The marketplace client 102 may include functionality including asset
categories, user settings and/or options, product lists, product purchase options, product
multi-media galleries, integrated origin and/or title assurance, and integrated point-of-sale
or digital wallet systems. After a user satisfies the authentication element 108, the user
will have access to the entirety of the marketplace client 102. The marketplace client 102
can include other elements, systems, subsystems, functionalities and modalities not
specifically shown and/or described herein.
In some embodiments, the electronic exchange client 104 may be a user interface
on an electronic device. After a user satisfies the authentication element 108, the user
will have access to the entirety of the electronic exchange client 104. The electronic
exchange client 104 allows a user to create representation equity tokens for a wide variety
of mixed assets types. The mixed asset types, as a non-exclusive example can include
automobiles, stocks, bonds, business ownership interests, collectibles, digital assets
(such as cryptocurrencies), and/or real estate. The representative equity tokens, as
blockchain-verified tokens, are proof of ownership of the underlying mixed asset types
within the representative equity tokens. The electronic exchange client 104 may also
allow a user to define the underlying assets and determine the weighting of assets in the
portfolio similar to an exchange-traded fund (“ETF”) product. The electronic exchange
client 104 can also allow the token creator to determine the total quantity and/or initial
supply of issued tokens. The electronic exchange client 104 can include other elements,
systems, subsystems, functionalities and modalities not specifically shown and/or
described herein.
In one embodiments, the agent portal 106 can be a user interface on an electronic
device. The agent portal 106 can facilitate consumer blockchain transactions that will be
handled by registered agents. After an approved partner or brand satisfies the
authentication element 108, the agent portal 106 allows the approved partner or brand to
upload product details, assured title, or origin information to the blockchain. Customers
of the approved partner or brand can verify the origin authenticity by scanning a product’s
QR code with an integrated digital wallet system. The agent portal 106 can include other
elements, systems, subsystems, functionalities and modalities not specifically shown
and/or described herein.
8
In other embodiments, the integrated ecosystem 100 can further include an
application programming interface (API) 110. The application programming interface
(API) 110 can include a set of functions and procedures that allow the creation of new
applications that access the features, data or applications of the integrated ecosystem
100 and its various subsystems. One non-exclusive, non-limiting example of application
programming interface (API) 110 may include user-added web addresses for real-time
pricing data within the electronic exchange client 104. The application programming
interface (API) 110 may also include support for older or legacy APIs for integration with
legacy systems. Modern APIs can also be supported within the application programming
interface (API) 110 and may include web or https as non-exclusive, non-limiting
examples. The application programming interface (API) 110 can have multiple elements
as shown in Figure 1 as three elements, 110A, 110B, 110C. Alternatively the application
programming interface (API) 110 can be one singular element connected to all of the
other elements in the integrated ecosystem 100. Still alternatively, the application
programming interface (API) 110 can be connected to less than all of the other elements
in integrated ecosystem 100 and the application programming interface (API) 110 may
only be connected to one other element. The application programming interface (API)
110 can include other elements, systems, subsystems, functionalities and modalities not
specifically shown and/or described herein.
In various embodiments, the integrated ecosystem 100 can further include a
database 112. The database 112 may be the host database on the host system as
previous described. The database 112 can also be a single computer, a cluster of
computers, a large mainframe, a minicomputer clusters, a group of servers functioning as
a single unit, or a server coupled to a web server. The database 112 may also include a
blockchain ledger of the current value of blockchain verified assets. In one embodiment,
every element within the integrated ecosystem 100 may need to access the database
112. Alternatively, less than every element within the integrated ecosystem 100 may
need to access the database 112. The database 112 can be multiple databases as shown
in Figure 1 as three databases 112A, 112B, and 112C. Alternatively, the database 112
can be one singular database connected to all of the other elements in the integrated
ecosystem 100. Still alternatively, the database 112 can be connected to less than all of
9
the other elements in integrated ecosystem 100 and the database 112 may only be
connected to one other element. The database 112 can include other elements, systems,
subsystems, functionalities and modalities not specifically shown and/or described
herein.
Sometimes, the integrated ecosystem 100 may also include deployable smart
contracts 114. A smart contract may control the execution of a transaction digitally by
recording the terms of the transaction on the blockchain. Smart contracts may function as
a trusted distributed application that gains its security/trust from the blockchain and the
underlying consensus among peers. A smart contract may include data which is signed
and has consensus associated with validation among nodes in the blockchain. This
prevents the smart contract from being repudiated. In one embodiment, every element
within the integrated ecosystem 100 may need a deployable smart contract 114.
Alternatively, the integrated ecosystem 100 may need only one deployable smart contract
114. There can be two deployable smart contracts as shown in Figure 1 114A and 114B.
The deployable smart contract 114 can include other elements, systems, subsystems,
functionalities and modalities not specifically shown and/or described herein.
One non-exclusive, non-limiting example including the use of deployable smart
contracts 114 is within the electronic exchange client 104. In this non-exclusive, non-
limiting example, a user can complete a form describing the deployable smart contract
114 including details such as the token trading symbol, the token name, and initial supply.
The deployable smart contract 114 may include a serial number of a digital currency held
on a blockchain.
In other embodiments, the user may also define assets for the deployable smart
contract 114 to track. When all of the requisite information is provided to the deployable
smart contract 114, the deployable smart contract 114 can be deployed to a blockchain.
In some embodiments, when the deployable smart contract 114 is tokenized by the block
chain, the token owner’s address can be transferred to a third-party financial exchange
to facilitate trade, investment and token/asset liquidity.
In one embodiment, the token owner may edit contract details after the deployable
smart contract 114 is already deployed to the blockchain. In another embodiment, the
deployable smart contract 114 can assist with price discovery, liquidity arbitrage,
10
rebalancing, utilizing oracle API functionality, or other built-in call to popular pricing APIs.
In various embodiments, title assurance 116A is another non-exclusive, non-
limiting example system that may be included in the integrated ecosystem 100.
Ownership of a piece of land can be verified using the title assurance 116A system. In
the title assurance 116A system, a buyer, a seller, a buyer’s bank, a seller’s bank, a
blockchain record, and a current title / land registry can be integrated into the title
assurance 116A system to verify and record title to a piece of real property. The data can
be handed within the title assurance 116A system in a similar manner as the origin
assurance system described above. Hashes can be made for the data stored in the
database 112. Hash data may be stored on the blockchain for future verification of
documents.
In one embodiment of the title assurance 116A system, a buyer can receive a title
deed from a seller, the buyer can send payment to a verification company, the buyer may
enter the seller’s details and title deed details into the system, a company can return
ownership details from the database 112, the blockchain and the title/land registry, and
the buyer may confirm the seller’s ownership of the property as valid or invalid. The seller
can pay a verification company to upload property ownership details, the title deed can
be recorded in the database 112, the blockchain and can be checked with title/land
registry or the verification company stores the data on behalf of the title/land registry, and
the seller’s title deed can be verified as being valid and that the seller is the verified owner.
In another embodiment of the title assurance 116A system, an agent can login or
register to use the title assurance 116A system, the agent can upload the asset title and
associated ownership data, the agent can query the national or local land/home/asset
registry, if the ownership data is invalid, a prompt warning of invalid data may be provided,
if the ownership data is valid the valid data can be added to the blockchain with a
cryptographic signature. A public user may also get access to the title assurance 116A
system. The public user can query the blockchain, the public user can parse the
blockchain asset title data, the public user can compare the blockchain asset title data to
the official records blockchain data and cryptography, if the data does not match a prompt
validation warning can be provided, if the data matches, a prompt valid ownership
message is provided.
11
Sometimes, the integrated ecosystem 100 may also include origin assurance
116B. A goods or product owner can be verified and approved for access to the origin
assurance system in order to verify the origin of the goods or product. The good or product
owner may be able to provide details for verification by the origin assurance 116B system.
After the details are provided, the data of the goods or product may be cryptographically
hashed, signed and placed onto a blockchain. Similarly, the same data of the goods or
product may be stored on the database 112. The origin assurance 116B system can
generate a detailed URL and a QR code to place on the goods or product packaging. The
QR code can be scanned to access the detail page on the web. The blockchain data may
also be parsed and can be verified against the stored data in the database 112 when the
detail page on the web is accessed. The web data may be verified if it matches the data
that was originally placed and signed on the blockchain.
In various embodiments, the integrated ecosystem 100 can further include a token
engine 118. The agent may help an asset owner create a tokenized security asset or
equity asset. The tokens may represent a whole or fractional ownership in an asset issued
on the blockchain in digital tokens. The asset and equity can be defined on the token
engine 118. The token details can be defined on the token engine 118. The tokens can
be issued onto the blockchain using a deployable smart contract. The token engine 118
can generate new smart contract tokens based on the defined token attributes. The newly
issued smart contract’s blockchain address may be recorded in the database 112. The
issued tokens may be digitally transferred to the asset owner’s pre-determined asset
receiving address. The owner may also send the tokens to any other investors’ digital
asset receiving addresses. The owner can also send tokens to an exchange or
marketplace to facilitate liquidity for the asset. The token engine 118 can include other
elements, systems, subsystems, functionalities and modalities not specifically shown
and/or described herein.
In one embodiment, the integrated ecosystem 100 can further include a
marketplace API 120. The marketplace API can facilitate the tracking of issued and
purchased assets within the integrated ecosystem 100. A user can issue, transfer, and/or
view assets by utilizing the marketplace API 120. The marketplace API 120 can include
other elements, systems, subsystems, functionalities and modalities not specifically
12
shown and/or described herein.
Sometimes, a cloud storage 122 can be implemented within the integrated
ecosystem 100. The cloud storage may provide storage of and access to data objects
that can also be stored on the database 112. Generally, uploading, access and
manipulation of data stored on a cloud storage 122 is conducted via an HTTP, FTP or
similar network connection. Cloud storage 122 service providers include those service
provides known to those having ordinary skill in the art. The cloud storage 122 can include
other elements, systems, subsystems, functionalities and modalities not specifically
shown and/or described herein.
Figure 2 is a flow chart depicting one embodiment of a method for authenticating
the origin of property of a seller, which can include one or more of the following steps. It
is understood that the method can include additional steps than those specifically shown
and/or described herein. Additionally or alternatively, the method can omit one or more
of the steps that are specifically shown and/or described herein. The method for
authenticating the origin of property of a seller can be implemented on integrated
ecosystem 100, or other systems and subsystems not specifically shown and/or
described herein.
At step 224, a user (typically a potential seller) of the system can upload data into
a host database of a host system. The host system can be the integrated ecosystem 100
or other systems and subsystems not specifically shown and/or described herein. The
host database may be database 112, cloud storage 122 or another database, data server,
cluster of servers, or cloud server system not specifically shown and/or described herein.
The data includes information regarding the property to be sold or offered for sale. The
data can include one or more of the type of property (i.e. personal or real), the specifics
of the property, location of the property, etc., as non-exclusive examples. A cryptographic
private key is generated by the host system from the data that is uploaded (input) in the
host system. The cryptographic private key may be associated with a digital wallet or a
chip on a smart card or a secure element of a user device. The cryptographic private key
may also be kept secret and may be used to digitally sign messages sent to other users.
At step 226, a cryptographic public key is generated by the host system from the
private key. The cryptographic public key may also be associated with a digital wallet.
13
The cryptographic public key may serve as an address to receive signed message from
other users.
At step 228, a first data object is structured with the private key and the public key.
The first data object is structured for hashing. The user data uploaded onto the host
system, the cryptographic private key, and the cryptographic public key may be bundled
to together in the structure for hashing.
At step 230, the first data object is cryptographically hashed into a first hash on the
host database of the host system. A hash can be generated from data of arbitrary size
(e.g., a string of text). The hash may be, for example, a numerical or string value. The
hash may be significantly smaller than the data itself. A hash may be generated by a
function such that it is extremely unlikely that some other data will produce the same hash
value, and it is extremely difficult to reconstruct the data based on the hash value.
At step 232, the first hash is inserted into a blockchain. The blockchain may be in
a digital ledger that is on many computing devices. The transactions may be recorded on
a set of blocks. Each block may contain a hash of one or more previous blocks.
Accordingly, the record of each transaction cannot be altered retroactively without the
alteration of all subsequent blocks and the collusion of the network. The first hash can be
unique and may be used to verify the data from the first data object has not been changed
or manipulated.
At step 234, a signed message is generated from the first hash.
At step 236, a second hash is generated from the signed message. The second
hash may be in the form of a cryptographic signature.
At step 238, the second hash is signed with the private key.
At step 240, the first hash is verified by comparing the public key and the signed
second hash. The authenticity of the message be verified using the public key and the
signed second hash by matching the content of the first hash to the second hash.
At step 242, a second data object is generated that includes one or more of the
data from host database, the first data object, the first hash and the second hash. The
second data object may include an address, the cryptographic private key, an imageURL,
the first data object, the first hash, and/or the second hash.
At step 244, the first hash is verified on the blockchain.
14
At step 246, the first hash is recreated to confirm consistency between the first
hash on the host database and the first hash on the blockchain. The first hash may be
added to the blockchain while simultaneously adding the updated data from the second
data object to the database. After the first hash is added to the blockchain, the blockchain
may generate a transaction ID. The second data object can be updated to include the
transaction ID, a logo, and a company description prior to saving the second data object
to the company database.
With the methods provided herein, the origin and/or authenticity of the property
can be verified, assured or otherwise confirmed, or conversely is unverified or
unconfirmed.
Figure 3 is a flow chart depicting one embodiment of a method for verifying the title
of property of a seller, which can include one or more of the following steps. It is
understood that the method can include additional steps than those specifically shown
and/or described herein. Additionally or alternatively, the method can omit one or more
of the steps that are specifically shown and/or described herein.
At step 348, a user (typically a potential seller) of the system can upload data into
a host database of a host system. The host system can be the integrated ecosystem 100
or other systems and subsystems not specifically shown and/or described herein. The
host database may be database 112, cloud storage 122 or another database, data server,
cluster of servers, or cloud server system not specifically shown and/or described herein.
The data includes information regarding ownership of the property to be sold or offered
for sale. The data can include one or more of the type of property (commercial, residential,
etc.), the specifics of the property, location of the property, geographic coordinates, etc.,
or any other relevant information concerning the property, as non-exclusive examples.
At step 350, a title registry is queried regarding ownership of the property. The title
registry can be from a local, state, federal or international administrative office,
governmental agency, third-party Title Company or any other entity that maintains
accurate title information on property.
At step 352, ownership of the property is verified (or conversely, not verified) with
the title registry.
At step 354, a cryptographic private key is generated by the host system.
15
At step 356, a public key is generated by the host system from the private key.
At step 358, a first data object is structured for hashing the data, the private key
and/or the public key.
At step 360, the first data object is cryptographically hashed into a first hash.
At step 362, the first hash is inserted into a blockchain.
At step 364, a signed message is generated from the first hash.
At step 366, a second hash is generated from the signed message.
At step 368, the second hash is signed with the private key.
At step 370, the first hash is verified by the comparing the public key with the
signed second hash.
At step 372, a second data object is generated that includes one or more of the
public key, the private key, the data that was uploaded into the host database of the host
system, the first data object, the first hash and the second hash.
At step 374, the second data object is inserted onto the host database of the host
system.
At step 376, at least one of the first hash and the second hash is verified.
At step 378, the first hash is recreated with the second data object to confirm
consistency between the first hash on the host database and the first hash on the
blockchain.
At step 380, a determination is made for whether the property at issue is validly
owned by the user (or another). This determination is provided by the host system to the
potential seller, a potential buyer, or any other interested person or entity.
With the methods provided herein, the title ownership and/or authenticity of the
property can be verified, assured or otherwise confirmed, or conversely is unverified or
unconfirmed.
Figure 4 is a flow chart depicting one embodiment of a method for generating
specialized tokens for a bundled asset including one or more asset types.
At step 482, a user inputs data regarding a bundled asset onto a system database
of the host system. The host system can be the integrated ecosystem 100 or other
systems and subsystems not specifically shown and/or described herein. The host
database may be database 112, cloud storage 122 or another database, data server,
16
cluster of servers, or cloud server system not specifically shown and/or described herein.
The bundled asset includes a plurality of assets. The data can include identifying the one
or more assets that are included in the bundled asset. The specific assets can include,
without limitation, any type or mix of assets, such as one or more types of digital currency
such as cryptocurrency, real property, personal property, collectibles, one or more
particular stocks, one or more types of bonds, gold bullion, etc., or any other type of asset
or property. The data can also include, the type of each asset, a trading symbol for the
bundled asset, and/or a token name for the bundled asset. The data input by the user
establishes a smart contract token. The user can also input an initial supply of tokens for
the bundled asset. For example, the user may wish to establish an initial supply of 20
tokens that would be for sale.
At step 484, the one or more assets, and thus, the bundled asset can be each
tracked with the smart contract. For example, in one representative embodiment, the
bundled asset can include 2 ounces of gold bullion, 1 bitcoin, 10 shares of Stock A, 10
shares of bond B, and a motorcycle. It is recognized that the foregoing example is but
one of an infinite number of potential bundled assets that can be assembled and used
with the systems and methods described herein.
At step 486, the user can identify the trading symbol for the bundled asset. The
trading symbol may be a series of letters or an icon, as non-exclusive, non-limiting
examples.
At step 488, the user can determine a price for the bundled asset and input the
price into the host system. For example, the user can determine that the price for 100%
of the bundled asset is $50,000.
At step 490, the user can determine a weighting of the bundled asset. For
example, the user can determine that only 40% of the bundled asset is for sale to potential
buyers. Thus, the total price for 40% of the bundled asset described at step 376 would
be $20,000. In this non-exclusive embodiment, the user is offering 20 tokens for sale at
a price of $1,000 each. In one embodiment the host system can mathematically calculate
the price per token and display that amount to perspective buyers.
At step 492, in one embodiment, the user can input into the host system one or
more smart contract addresses for any digital assets that may be included in the bundled
17
asset.
At step 494, the user can input one or more API web addresses for real-time pricing
of each of the plurality of assets into the host system so that the price for the bundled
asset can change over time. Stated another way, the price for the bundled asset can be
dynamic. In another embodiment, the price for the bundled asset can be time-stamped
and can static.
At step 496, once all necessary information has been received by the host system,
the smart contract can be deployed to a blockchain.
At step 498, the smart contract token can be transferred to a third-party financial
exchange for facilitating trade, investment, token/asset liquidity and/or any other type of
financial transactions.
With the technology provided herein, one or more of the following improvements
can be realized: the integrated ecosystem simplifies the issuance, verification and
management of created and purchased digital asset tokens. This end-to-end solution
vastly improves blockchain financial services technology by improving the speed of
tokenization and trading, increasing the security of integrated assets of different types by
creating unique, verified tokens.
The embodiments described herein are not intended to be exhaustive or to limit
the invention to the precise forms disclosed in the following detailed description. Rather,
the embodiments are chosen and described so that others skilled in the art can appreciate
and understand the principles and practices. As such, aspects have been described with
reference to various specific and preferred embodiments and techniques. However, it
should be understood that many variations and modifications may be made while
remaining within the spirit and scope herein.
It is understood that although a number of different embodiments of the systems
and methods have been illustrated and described herein, one or more features of any
one embodiment can be combined with one or more features of one or more of the other
embodiments, provided that such combination satisfies the intent of the present invention.
While a number of exemplary aspects and embodiments of the systems and
methods have been discussed above, those of skill in the art will recognize certain
modifications, permutations, additions and sub-combinations thereof. It is therefore
18
intended that the following appended claims and claims hereafter introduced are
interpreted to include all such modifications, permutations, additions and sub-
combinations as are within their true spirit and scope, and no limitations are intended to
the details of construction or design herein shown.
19
What is claimed is:
1. A method for generating specialized tokens for a bundled asset, the bundled
asset including a plurality of assets, the method comprising the step of:
a user inputting data defining a bundled portfolio including one or more of a
trading symbol, a token name and an initial supply into a host database of a host
system to establish a smart contract token, the plurality of assets within the
bundled asset are each tokenized and verified by utilizing a blockchain.
2. The method of claim 1 further comprising the step of tracking the bundled
portfolio with a smart contract.
3. The method of claim 1 wherein the bundled portfolio includes a plurality of
different types of assets.
4. The method of claim 1 further comprising the step of the user determining
a price for the bundled portfolio into the host system.
5. The method of claim 1 further comprising the step of the user determining
a weighting of the bundled portfolio into the host system.
6. The method of claim 1 further comprising the step of the user inputting one
or more smart contract addresses for any digital assets included in the bundled portfolio
into the host system.
7. The method of claim 1 further comprising the step of the user inputting one
or more API web addresses for real-time pricing of each of the plurality of assets into the
host system.
8. The method of claim 2 further comprising the step of deploying the smart
contract token to the blockchain.
20
9. The method of claim 8 further comprising the step of transferring the smart
contract token to a third-party financial exchange.
10. A host system for generating specialized tokens for a bundled asset, the
bundled asset including a plurality of assets, the host system comprising:
a host processor;
a host database; and
a non-transitory computer-readable medium comprising code, executable
by the host processor;
wherein the host system is configured to allow a user to input data defining
a bundled portfolio including one or more of a trading symbol, a token name and
an initial supply into the host database of the host system to establish a smart
contract token, the plurality of assets within the bundled asset are each tokenized
and verified by utilizing a blockchain.
11. The host system of claim 10 wherein the host system is configured to track
the bundled portfolio with a smart contract.
12. The host system of claim 10 wherein the bundled portfolio includes one or
more non-currency assets.
13. The host system of claim 10 wherein the host system is configured to allow
the user to determine a price for the bundled portfolio and set the price for the bundled
portfolio into the host system.
14. The host system of claim 10 wherein the host system is configured to allow
the user to determine a weighting of the bundled portfolio into the host system.
21
15. The host system of claim 10 wherein the host system is configured to allow
the user to input one or more smart contract addresses for any digital assets included in
the bundled portfolio into the host system.
16. The host system of claim 10 wherein the host system is configured to allow
the user to input one or more API web addresses for real-time pricing of each of the
plurality of assets into the host system.
17. The host system of claim 11 wherein the host system is configured to deploy
the smart contract token to the blockchain.
18. The host system of claim 17 wherein the host system is configured to
transfer the smart contract token to a third-party financial exchange.
19. The host system of claim 11 wherein the plurality of assets includes at least
one digital asset.
20. A host system for generating specialized tokens for a bundled asset, the
bundled asset including a plurality of assets, the host system comprising:
a host processor;
a host database; and
a non-transitory computer-readable medium comprising code, executable
by the host processor, for implementing a method comprising:
a user inputting data into the host database of the host system
regarding the bundled asset including information regarding one or more of:
the specific assets included in the bundled asset, a trading symbol for the
bundled asset, a token name for the bundled asset, and a quantity of an
initial supply of tokens, the data establishing a smart contract token;
tracking the bundled asset with a smart contract;
the user identifying the trading symbol for the bundled portfolio into
the host system;
22
the user determining a price for the bundled portfolio into the host
system;
the user determining a weighting of the bundled portfolio into the host
system;
the user inputting one or more smart contract addresses for any
digital assets included in the bundled portfolio into the host system;
the user inputting one or more API web addresses for real-time
pricing of each of the plurality of assets into the host system;
deploying the smart contract token to the blockchain; and
transferring the smart contract token to a third-party financial
exchange.
23
ABSTRACT
A method for generating specialized tokens for a bundled asset that includes a
plurality of assets can include the step of a user inputting data defining a bundled portfolio
including one or more of a trading symbol, a token name and an initial supply into a host
database of a host system to establish a smart contract token. The plurality of assets
within the bundled asset can be tokenized and verified by utilizing a blockchain. A host
system for generating specialized tokens for a bundled asset including a plurality of
assets can include one or more of a host processor, a host database, and a non-transitory
computer-readable medium comprising code, executable by the host processor. The host
system can be configured to track the bundled portfolio with a smart contract. The
bundled portfolio can include one or more non-currency assets
Agent Portal
Authentication
Origin Assurance
ETX
Authentication
Marketplace
Authentication
MarketplaceAPI / Issue,
Transfer, ViewAssets
Deployed SmartContracts
Deployed SmartContractsToken Engine
Database API
Cloud Storage
Database API Database API
122
112A
116B110A
114A
118
120114B
110C112C110B
108C
112B
108B108A
100
102104106
1/5
Title Assurance
116A
A CRYPTOGRAPHIC PRIVATE KEY IS GENERATED WITH A HOST SYSTEMFROM DATA UPLOADED ONTO A HOST DATABASE OF THE HOST SYSTEM
REGARDING THE PROPERTY TO BE SOLD BY A SELLER
A CRYPTOGRAPHIC PUBLIC KEY IS GENERATEDFROM THE PRIVATE KEY WITH THE HOST SYSTEM
A FIRST DATA OBJECT FOR HASHING IS STRUCTUREDWITH THE PRIVATE KEY AND THE PUBLIC KEY
THE FIRST DATA OBJECT IS CRYPTOGRAPHICALLY HASHEDINTO A FIRST HASH ON THE HOST DATABASE
THE FIRST HASH IS INSERTED INTO A BLOCKCHAIN
A SIGNED MESSAGE IS GENERATED FROM THE FIRST HASH
A SECOND HASH IS GENERATED FROM THE SIGNED MESSAGE
THE FIRST HASH IS VERIFIED BY COMPARING THEPUBLIC KEY AND THE SIGNED SECOND HASH
A SECOND DATA OBJECT IS GENERATED THAT INCLUDES ONE ORMORE OF THE DATA, THE FIRST DATA OBJECT, THE FIRST HASH
AND THE SECOND HASH
THE FIRST HASH IS VERIFIED ON THE BLOCKCHAIN
THE FIRST HASH IS RECREATED TO CONFIRM CONSISTENCYBETWEEN THE FIRST HASH ON THE HOST DATABASE AND
THE FIRST HASH ON THE BLOCKCHAIN
224
226
228
230
232
234
236
240
242
244
246
THE SECOND HASH IS SIGNED WITH THE PRIVATE KEY238
2/5
USER UPLOADS DATA REGARDING OWNERSHIP OFTHE PROPERTY ONTO A HOST DATABASE
A TITLE REGISTRY IS QUERIED REGARDINGOWNERSHIP OF THE PROPERTY
OWNERSHIP OF THE PROPERTY IS VERIFIED WITHTHE TITLE REGISTRY
A CRYPTOGRAPHIC PRIVATE KEY IS GENERATED BY A HOST SYSTEM
A PUBLIC KEY IS GENERATED FROM THE PRIVATEKEY WITH THE HOST SYSTEM
A FIRST DATA OBJECT IS STRUCTURED INTO FOR HASHINGTHE DATA, PRIVATE KEY AND PUBLIC KEY
THE FIRST DATA OBJECT IS CRYPTOGRAPHICALLYHASHED INTO A FIRST HASH
THE FIRST HASH IS INSERTED ONTO A BLOCKCHAIN
A SIGNED MESSAGE IS GENERATED FROM THE FIRST HASH
A SECOND HASH IS GENERATED FROM THE SIGNED MESSAGE
THE SECOND HASH IS SIGNED WITH THE PRIVATE KEY
(Continued on Next Page)
348
350
352
354
356
358
360
362
364
366
368
3/5
THE FIRST HASH IS VERIFIED BY COMPARING THE PUBLIC KEYAND THE SECOND HASH WITH THE SIGNED MESSAGE
370
(Continued from Previous Page)
A SECOND DATA OBJECT IS GENERATED INCLUDING ONE OR MORE OFTHE PUBLIC KEY, THE PRIVATE KEY, THE DATA, THE FIRST DATA
OBJECT, THE FIRST HASH AND THE SECOND HASH
THE SECOND DATA OBJECT IS INSERTED ONTO THE HOST DATABASE
AT LEAST ONE OF THE FIRST HASH AND THE SECOND HASH IS VERIFIED
THE FIRST HASH IS RECREATED WITH THE SECOND DATA OBJECT TOCONFIRM CONSISTENCY BETWEEN THE FIRST HASH ON THE HOST
DATABASE AND THE FIRST HASH ON THE BLOCKCHAIN
A DETERMINATION IS PROVIDED WITH THE HOST SYSTEM OFA VALID OWNERSHIP OF THE PROPERTY
372
374
376
378
380
4/5
A USER INPUTS DATA DEFINING A BUNDLED ASSET INCLUDING ONEOR MORE OF A TRADING SYMBOL, A TOKEN NAME AND AN INITIAL
SUPPLY INTO A HOST DATABASE OF A HOST SYSTEM TOESTABLISH A SMART CONTRACT TOKEN
482
THE ONE OR MORE ASSETS ARE TRACKED WITH A SMART CONTRACT
THE USER IDENTIFIES THE TRADING SYMBOL FOR THE BUNDLEDASSET INTO THE HOST SYSTEM
THE USER DETERMINES A PRICE FOR THE BUNDLED ASSET INTOTHE HOST SYSTEM
THE USER DETERMINES A WEIGHTING OF THE BUNDLED ASSETINTO THE HOST SYSTEM
THE USER INPUTS ONE OR MORE SMART CONTRACT ADDRESSESFOR ANY DIGITAL ASSETS INCLUDED IN THE BUNDLED ASSET
INTO THE HOST SYSTEM
THE USER INPUTS ONE OR MORE API WEB ADDRESSES FORREAL-TIME PRICING OF EACH OF THE PLURALITY OF ASSETS INTO
THE HOST SYSTEM
THE SMART CONTRACT TOKEN IS DEPLOYED TO A BLOCKCHAIN
THE SMART CONTRACT TOKEN IS TRANSFERRED TO A THIRDPARTY FINANCIAL EXCHANGE
484
486
488
490
492
494
496
498
5/5
Agent Portal
Authentication
Origin Assurance
ETX
Authentication
Marketplace
Authentication
MarketplaceAPI / Issue,
Transfer, ViewAssets
Deployed SmartContracts
Deployed SmartContractsToken Engine
Database API
Cloud Storage
Database API Database API
122
112A
116B110A
114A
118
120114B
110C112C110B
108C
112B
108B108A
100
102104106
1/5
Title Assurance
116A
A CRYPTOGRAPHIC PRIVATE KEY IS GENERATED WITH A HOST SYSTEMFROM DATA UPLOADED ONTO A HOST DATABASE OF THE HOST SYSTEM
REGARDING THE PROPERTY TO BE SOLD BY A SELLER
A CRYPTOGRAPHIC PUBLIC KEY IS GENERATEDFROM THE PRIVATE KEY WITH THE HOST SYSTEM
A FIRST DATA OBJECT FOR HASHING IS STRUCTUREDWITH THE PRIVATE KEY AND THE PUBLIC KEY
THE FIRST DATA OBJECT IS CRYPTOGRAPHICALLY HASHEDINTO A FIRST HASH ON THE HOST DATABASE
THE FIRST HASH IS INSERTED INTO A BLOCKCHAIN
A SIGNED MESSAGE IS GENERATED FROM THE FIRST HASH
A SECOND HASH IS GENERATED FROM THE SIGNED MESSAGE
THE FIRST HASH IS VERIFIED BY COMPARING THEPUBLIC KEY AND THE SIGNED SECOND HASH
A SECOND DATA OBJECT IS GENERATED THAT INCLUDES ONE ORMORE OF THE DATA, THE FIRST DATA OBJECT, THE FIRST HASH
AND THE SECOND HASH
THE FIRST HASH IS VERIFIED ON THE BLOCKCHAIN
THE FIRST HASH IS RECREATED TO CONFIRM CONSISTENCYBETWEEN THE FIRST HASH ON THE HOST DATABASE AND
THE FIRST HASH ON THE BLOCKCHAIN
224
226
228
230
232
234
236
240
242
244
246
THE SECOND HASH IS SIGNED WITH THE PRIVATE KEY238
2/5
USER UPLOADS DATA REGARDING OWNERSHIP OFTHE PROPERTY ONTO A HOST DATABASE
A TITLE REGISTRY IS QUERIED REGARDINGOWNERSHIP OF THE PROPERTY
OWNERSHIP OF THE PROPERTY IS VERIFIED WITHTHE TITLE REGISTRY
A CRYPTOGRAPHIC PRIVATE KEY IS GENERATED BY A HOST SYSTEM
A PUBLIC KEY IS GENERATED FROM THE PRIVATEKEY WITH THE HOST SYSTEM
A FIRST DATA OBJECT IS STRUCTURED INTO FOR HASHINGTHE DATA, PRIVATE KEY AND PUBLIC KEY
THE FIRST DATA OBJECT IS CRYPTOGRAPHICALLYHASHED INTO A FIRST HASH
THE FIRST HASH IS INSERTED ONTO A BLOCKCHAIN
A SIGNED MESSAGE IS GENERATED FROM THE FIRST HASH
A SECOND HASH IS GENERATED FROM THE SIGNED MESSAGE
THE SECOND HASH IS SIGNED WITH THE PRIVATE KEY
(Continued on Next Page)
348
350
352
354
356
358
360
362
364
366
368
3/5
THE FIRST HASH IS VERIFIED BY COMPARING THE PUBLIC KEYAND THE SECOND HASH WITH THE SIGNED MESSAGE
370
(Continued from Previous Page)
A SECOND DATA OBJECT IS GENERATED INCLUDING ONE OR MORE OFTHE PUBLIC KEY, THE PRIVATE KEY, THE DATA, THE FIRST DATA
OBJECT, THE FIRST HASH AND THE SECOND HASH
THE SECOND DATA OBJECT IS INSERTED ONTO THE HOST DATABASE
AT LEAST ONE OF THE FIRST HASH AND THE SECOND HASH IS VERIFIED
THE FIRST HASH IS RECREATED WITH THE SECOND DATA OBJECT TOCONFIRM CONSISTENCY BETWEEN THE FIRST HASH ON THE HOST
DATABASE AND THE FIRST HASH ON THE BLOCKCHAIN
A DETERMINATION IS PROVIDED WITH THE HOST SYSTEM OFA VALID OWNERSHIP OF THE PROPERTY
372
374
376
378
380
4/5
A USER INPUTS DATA DEFINING A BUNDLED ASSET INCLUDING ONEOR MORE OF A TRADING SYMBOL, A TOKEN NAME AND AN INITIAL
SUPPLY INTO A HOST DATABASE OF A HOST SYSTEM TOESTABLISH A SMART CONTRACT TOKEN
482
THE ONE OR MORE ASSETS ARE TRACKED WITH A SMART CONTRACT
THE USER IDENTIFIES THE TRADING SYMBOL FOR THE BUNDLEDASSET INTO THE HOST SYSTEM
THE USER DETERMINES A PRICE FOR THE BUNDLED ASSET INTOTHE HOST SYSTEM
THE USER DETERMINES A WEIGHTING OF THE BUNDLED ASSETINTO THE HOST SYSTEM
THE USER INPUTS ONE OR MORE SMART CONTRACT ADDRESSESFOR ANY DIGITAL ASSETS INCLUDED IN THE BUNDLED ASSET
INTO THE HOST SYSTEM
THE USER INPUTS ONE OR MORE API WEB ADDRESSES FORREAL-TIME PRICING OF EACH OF THE PLURALITY OF ASSETS INTO
THE HOST SYSTEM
THE SMART CONTRACT TOKEN IS DEPLOYED TO A BLOCKCHAIN
THE SMART CONTRACT TOKEN IS TRANSFERRED TO A THIRDPARTY FINANCIAL EXCHANGE
484
486
488
490
492
494
496
498
5/5